Having Problems Selling Domain Names To End Users? Think Different
One of the major frustrations I had early in my technology sales career is that I was in a position where when selling to a customer I only had one product to position, in other words I lived or died with that one item. The only way to sell more was to hope they grew enough to want more and if they did not want that product you were done, there was nothing left. As domain investors in most cases that is the position you are in, they either want your domain name or not and there is no increasing value with more products, or saving a deal by removing one piece but continuing to sell other components. You are a one trick pony.
Although not exactly the same I think this is part of the reason I have been able to do well selling .NET generics this year, I was able to show additional value by having the domain name on a small website/minisite rather than just selling a "name". Sure we know there is inherent value in the name but as a combined product of website attached to a name people were more comfortable with what they were buying, they recognized it as a business that consisted of a domain name and a website which in turn created a solution to drive more traffic targeted towards their business needs.
I know some people do not like to ever have a site on a domain name they are trying to sell, maybe it has not worked for you, but I can say without a doubt it worked for me this year and that was part of the reason for launching EzDevelop.com (beta going well BTW, hope to have phase 1 launched soon to the public).
Anyway, back to selling a solution, as we talk about this think about solutions you can offer around the domain names you are trying to sell (and I am more talking about people trying to sell outside of the network of domainers).
As I mentioned before, I was working at a company where I was limited to one product, you won or lost, it was an all or nothing deal (look at it as they bought my name or they did not buy my name, black and white). But I was then offered an opportunity to work at a solutions company, a company that worked as a systems integrator that brought together multiple pieces of technology to create a best of breed solution to help companies move their networks forward. What did that mean?
Well first off lets take a high level look at what a typical deal consisted of:
Routers - $15,000
Ethernet Switching - $10,000
Servers - $50,000
Software - $75,000
Ancillary Equipment - $5,000
Access Equipment - $50,000
This is not everything but it gives some indication of the number of pieces. I was not limited to one big component but had a larger set of components at a lower price but no one piece killed the deal. In other words I had ways to create more value (by selling servers instead of just software) but also had the ability to still stay in the game if I lost one piece (lets say they had a direct deal with Sun). Long story short, more value to the customer is created since I provided a solution to a problem rather than just bringing a product (domain name) and based on that I can hedge my bets and increase the deal size at the same time.
I look at marketing in the same way, when talking to customers I am the first one to tell them that they should not throw all their eggs into one basket, I like helping them create a holistic method to help their company (hence my post about marketing offline). Even if it is not all with Missouri.me and Localtek at the end of the day helping them find a solution to grow their business helps everyone.
So, I am sure you have picked up on it by now, but if not your question to me is, "So what does this have to do with selling domain names?"
Well, if you are having problems with end users maybe try a new approach, think of something you could package with the name to show value they understand. Most people are not going to react in a positive manner if you call and say, hey wanna buy a name. It could be a social media package, an ebook, etc. The point is be creative, do not limit yourself, you may just find you have more success by thinking out of the box and creating a solution rather than just selling a piece of the solution.
Great post Bruce, I totally agree with your points. Adding value to a domain will only improve your chances of closing that sale, especially if your target end user already has a website.
Proving to them that your domain is something their business NEEDS by showing them the results you’ve been able to achieve, instead of simply relying on your words. I see it as materializing the intangible, domains, like any other intangible sale need to be made real and touchable.
Sometimes I choose to compete with the end user, creating a sense of urgency and increasing my chances of the end user taking action to prevent the name to go to a competitor.
“thinking out of the box and creating a solution rather than just selling a piece of the solution.”
This is by far the most relevant point when targeting end users. Domains are only part of the equation that will drive more customers into that business, figure out exactly what the whole package is and deliver it. That’s where the money is $$$$$
Dan
@Dan – Thanks much. It is amazing at times how just a little bit of extra value added somehow can get a deal done, being more than a one trick pony may help sell that domain name at a higher price and much easier.
This does work, I have witnessed it and more focus on what a customer understands rather than what they do not (domain names) will help everyone. They get what they need but to not know they need and you have an easier time getting a deal done.
Bruce – Yes, this is an excellent post, and one that needed to be published. For my part, I don’t know why domainers frequently think so ’small’ – whether they’re successful or not.
If, you have secured a choice name in an emerging area, why wouldn’t you also register all of the (quality) related (.com) names to further enhance the value of your premier name? Think more like a porfolio manager, rather than like a day trader.
I have place major bets on three emerging areas, each of which are starting to really come into their own: Sentiment Analysis, Location-Based Services, and Virtualization. And in each case, my approach has been to register names that potential (and existing) entrants in the space would logically name their business, tool, app, et cetera.
IMHO, the ‘value-add’ is actually offering a potential buyer the entire portfolio in that space, which can then be used to direct type-in traffice to the buyer/partner, as well as to serve in a defensive capacity, as well, i.e., forcing players to have to brand their business/products with non-intuitive names.
Anyway, thanks again for the post.
Gene
Totally agree, Bruce!
This summer I’ve hand registered casual game related domain name. Then I’ve placed DIY website (set it up in 5 minutes – comes from casual gaming affiliate program tools)
In order to attrack some traffic I’ve made twitter and youtube accounts – to announce updates on website. I used free Windows Video editing software to make simple in-game videos.
So now when I’ll approach an end user I have something more than just a name.
I hope that gives more idea how domain can be developed. At least my understanding =]
Your ideas make total sense. But what you may be doing is scaring off the domain owners who just want to make a quick profit.
What you are saying is that selling domains to endusers is an art and skill in itself. Selling to endusers is not just a matter of sending out a few emails and waiting for the fish to bite and the checks to roll in. That news will disappoint quick fortune hunters.
Here’s a suggestion: If, as you indicate, selling to endusers is a specialized skill, how about starting a regular newsletter addressed to this specialization?
@Gene – Location Based Services is a key marketing, good luck on that!
@Rauhbautz – It makes complete sense. Being able to offer more to the mix may help overcome challenges from a potential customer if they are looking for a reason to buy.
@Noo Yawka – BTW, great name!!!
And you are right:) This is not for those looking for a quick buck, this is for those wanting a bigger size deal and willing to work a bit for it. No easy hit send and make a million dollars plan here.
I am getting ready to start a newsletter, not sure I will make it this specialized but I could see a series at some point in there.
Thanks for the comment.